Sheng Siong net profit shoots up by 18.7% to $14.5m

Its new stores are beginning to bear fruit.

Consumers are flocking more to the supermarket group’s new stores than its old stores, as it also recently launched its self-checkout service to cut back on staff costs.

The group’s earnings grew by 7.3% to $200m, with growth mainly being driven by its newly-opened branches, according to OCBC.

“SSG managed to keep its gross profit margin steady at 24.3% vs. 24.2% in 3Q14,” OCBC said.

However, this was lower than the 25.2% growth seen the previous quarter due to seasonality effect, lower selling prices and higher input prices.

OCBC is also optimistic about Sheng Siong’s plan to unveil a new 4.3k sq ft store at Dawson Road, Singapore, expected to be operational in November.